Most financial experts in the market advise people to enter a life insurance policy when they are young and healthy. The cost of insurance is extremely cheap for people entering the cover at a young age. Moreover, most companies in the market do not require any medical examination till a particular age. Another significant factor to be considered here is that the premium charged at the time of entry will remain the same over the years irrespective of one’s age. All these factors make it highly beneficial for a person to take a life insurance policy at a young age.
There are situations wherein a person suffering from certain illnesses may also seek life insurance coverage. In case of terminal illnesses, most life insurers in the market refrain from providing any kind of coverage. If the condition is treatable or manageable, there will not be any problems in getting life insurance coverage. Most people get standard rates when they apply for life insurance. However, people with pre-existing conditions may have to pay a little extra if they wish to have a comprehensive life insurance cover. This is mainly because the risk is higher for insurers providing coverage for people with health issues.
People who have the following conditions are excluded by almost all life insurance companies in the market:
Life insurers cannot deny any claims related to death caused by cancer or other terminal conditions for an existing policyholder. However, they may not sell covers for people who already have these conditions. Life insurance companies expect applicants to declare their existing conditions while signing up for a policy. For high-value covers and entry age over 45 years, most companies require mandatory medical examination before providing coverage. If the above-mentioned conditions are diagnosed during the examination, the company will not provide any coverage to those applicants.
As noted earlier, people who have health issues may have to shell out more in premiums when buying a new life insurance policy. There is no standard metric to calculate the increase in premium amount for people with existing conditions. The premium calculations may differ from one insurer to another based on the severity of a specific condition. People who suffer from the following conditions are likely to spend more on their health insurance premiums:
The conditions listed here are some of the common ailments for which a health insurer may deny coverage or charge higher premiums. As noted, there is no specific standard when it comes to calculating higher premiums for a policy. Hence, it is better to get quotes from multiple life insurers in the market if you are suffering from a specific condition. Based on the price quote offered, you may choose a life insurance cover that meets your requirements.
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